When lockdown hit in 2020, Holly Pirrie’s events business effectively shut down overnight. Her dress business almost went under too.
Holly’s an entrepreneur and beauty queen from the North West, and like thousands of small business owners that year, she had to make a decision: fold, or take a Bounce Back loan and try to trade her way out. She took the loan. Here’s how it played out, and what she’d tell anyone trying to set up their own business.
A founder of two businesses
I run two businesses: Pageant Girl Ltd, where I organise national pageant events and The Dress Studio, a prom and party superstore.
I started with the events, which had a relatively low set-up cost and so I was able to start this from savings that I had, I literally started it from my bed at university! As this grew, I really noted the gap in the market for a physical store where you could try a large selection of longer dresses that were more formal. Naturally, I knew this would be well-suited to the pageant girls but I felt a larger market would be prom customers.
From the funds that I generated from the events, I reinvested the money into the business to open The Dress Studio, which had much, much higher start-up costs. Looking back, I think that was one of my earliest lessons in business finance: sometimes you need to reinvest in your business rather than simply taking the money out.
From there, the two sides of the business have naturally complemented each other. I’ve found that quieter periods in the store can often be balanced by busier periods with the events.
2020 – the year that everything changed
Like many business owners at the time, I thought this forced break would be for a matter of days and I was thrilled to have some quality time with my two-year-old son. We had just had a very busy period within the store and we’d held a pageant event too, so I was excited to take a moment to breathe. Then reality hit.
Both of my businesses were utterly dependent on people going out and being together. Overnight, everything stopped. Some people would say that it was fine because I could still sell online, but that completely missed the point – nobody was going anywhere, so they certainly weren’t in the market for a long evening dress!
As a business owner, I can confidently tell you that I am a control freak and to suddenly have no power over anything linked to my business, my future, my livelihood and my team’s, it just felt very surreal.
I had wasted hours, days and weeks working on events that ended up postponed.
I had to do a temporary pivot, buying loungewear and selling it from my living room. I kept trying to generate an income and to keep looking forward.
There would be times when we could re-open, but then we’d have to close again, or some areas could open but others couldn’t. I truly started to think we may never return to normality and I started thinking about what I’d add to my CV and where I’d send it.
We were desperate.
I had to do whatever I could to keep the businesses going. I used the furlough scheme and took out a Bounce Back Loan, both of which helped me immensely. I’d never previously needed to borrow money for the business, so that was a completely new experience for me.
More than anything, both schemes gave me hope that normality would return and gave me the opportunity to keep going. But it also taught me that borrowing money isn’t the same as making money – ultimately, that money has to be repaid, and you need a clear plan for how you’re going to do that.
We’ve finally paid off the loan.
Recently, the business finally paid off the Bounce Back loan. I felt incredibly proud and relieved.
When I took the Bounce Back Loan, I knew it was the right thing to do at the time because it gave me the breathing space to keep the business going through an incredibly uncertain period. But I had never liked having business debt hanging over me.
When I finally made that last payment, it felt like closing a chapter. It wasn’t just about the amount of money I’d repaid, it represented everything we’d been through to get the business back to a position where I could afford to clear it.
I think it also changed my relationship with business finance. Before COVID, I probably saw borrowing as something to avoid. Now I see that debt can be a useful business tool when it’s taken on for the right reasons and you have a realistic plan for managing it.
But I also have a much greater appreciation for cash reserves and financial security because COVID taught me just how quickly circumstances can change.
What would I say to someone who wants to start a business?
Trust your gut.
Yes, it’s cliché, but if you feel genuinely passionate about something, go for it. But don’t go into business thinking you’ll spend two hours a day answering emails from your favourite coffee shop with an iced latte before heading to the gym.
The reality is long hours, risk, uncertainty and the fact that there is rarely a true start or finish time to your day. But for me, that’s also what I love about it. I love watching a business develop, figuring out what works and what doesn’t, and I try to see everything as a lesson rather than a failure.
I’m also a big believer in living a life without regret. If there’s something you really want to do, explore it – but think it through first. Fools rush in.
This year, I’ve actually turned that advice on myself. Twenty years after I first competed in a pageant, I’ve entered Ms Great Britain, which coincides with me turning 40 at the end of the year. I’ve used the platform to encourage girls and women to think about their financial futures and make choices that give them greater independence. That’s become something I’m really passionate about: helping women understand that financial independence isn’t just about having money. It’s about having choices, confidence and the freedom to make decisions about your own life.
